Globalization has increased the mobility of both monetary and human capital. Many workers from emerging markets work abroad and remit money back into a recipient nation. A favorable exchange rate may allow sojourning workers to remit money to support their families in amounts which may exceed their domestic earning potential. In some instances, inbound remittances may constitute a significant portion of the recipient nation's GDP and can be valued in aggregate at several billion dollars per year.
Existing channels for inbound remittances may be informal and privately operated. These channels may be susceptible to attacks or fraud, may charge unfair rates or present unreliable service, and may also be used to launder money and support illicit operations. Informal channels also do not provide the recipient nation insight or control over an important segment of the economy. Informal channels of inbound remittances, such as cross-border value transfers, may introduce risk into a significant amount of a nation's income. Moreover, established value transfer systems and payment processing systems, which may address shortcomings of the informal channels, may be wary of cross-border value transfers due to the higher probability of fraud and increased risk, especially in card not present/cash not present transactions. Facilitating faster, cheaper, safer, more convenient, secure, and efficient operations may increase the flow of inward remittances into the recipient nation.
Thus, there is a need in the art for a formalized value or money transfer system that addresses the above concerns. Embodiments of the invention address these and other problems, individually and collectively.